Commission disburses nearly €43 billion to five Member States under NextGenerationEU

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The European Commission has disbursed a total of €42.8 billion to five Member States – Italy, Portugal, Cyprus, Malta, and Spain – under the Recovery and Resilience Facility (RRF), the centrepiece of NextGenerationEU. The disbursements are part of the Commission’s efforts to support the economic growth and resilience of EU Member States, and are based on the successful steps in the implementation of reforms and investments outlined in each country’s recovery and resilience plan.

Spain: €23.1 billion disbursement

The Commission has disbursed €23.1 billion to Spain, representing the fifth payment under the RRF. This payment includes €7 billion in loans and €16 billion in grants. The payment covers 82 out of 84 milestones and targets, including important steps in the delivery of 20 reforms and 49 investments. The reforms and investments include measures to boost the uptake of and investment in renewable energy, to cut red tape and ensure that clean energy sources are better connected to the power grid, to create a Council on Sustainable Finance as a forum to promote public-private collaboration in this area and to improve justice efficiency. They also include investments in short-distance rail travel, strengthening citizens and SMEs’ cybersecurity resilience by boosting the cybersecurity industry and supporting innovative companies.

As part of this disbursement, approximately €139 million is being paid in relation to a target that was previously suspended in the fourth payment request. This target aimed to support the digitalisation of small and medium-sized enterprises (SMEs). Spain has since fulfilled the requirements, allowing for the release of these funds.

In parallel, an amount of approximately €500 million is suspended for two milestones related to the grant component of the fifth payment request, concerning a tax reform and the digitalisation of regional and local entities that are deemed not fulfilled at this point in time. Spain has now six months to satisfactorily fulfil these two milestones.

An additional amount of approximately €627 million is suspended due to the reversal of a milestone linked to the reform on temporary employment in civil service. This amount had previously been disbursed as part of Spain’s first payment request. The Commission has deducted this amount from the fifth payment request since the milestone can no longer be considered as satisfactorily fulfilled. Spain has now six months to take additional measures to satisfactorily fulfil this milestone. 

The total funds paid out to Spain under the RRF now stand at €71 billion, which is 44% of the total allocation. Spain’s overall recovery and resilience plan is financed by €163 billion, in grants and loans.

Italy: €18.3 billion disbursement

The Commission has disbursed €18.3 billion to Italy, representing the seventh payment under the RRF. This payment includes €4.6 billion in grants and €13.7 billion in loans, and covers 31 milestones and 33 targets related to 10 reforms and 46 investments.

Italy has taken significant steps to boost competition and transparency, adopting a new Annual Competition Law 2023 that promotes public tender procedures and increased oversight in sectors such as highways. Additionally, the country has improved accessibility for railway passengers with disabilities and reduced mobility by renovating 10 stations in Southern Italy. Italy has also increased its renewable energy distribution capacity by 1,848 MW through the installation of new substations, modernization of existing ones, and reinforcement of distribution lines, enhancing the grid’s ability to distribute clean energy.

The total funds paid out to Italy under the RRF now stand at €140.4 billion, which is 72% of the total allocation. Italy’s overall recovery and resilience plan is financed by €194.4 billion, in grants and loans.

Portugal: €1.34 billion disbursement

The Commission has disbursed €1.34 billion to Portugal, representing the sixth payment under the RRF. This payment covers 32 milestones and targets, including key reforms and investments in healthcare, housing, forest fire management, renewable energy, and the business environment. A key reform aims to improve insolvency proceedings, making it easier for companies to restructure and invest. Portugal has also invested in expanding its national care networks,supporting the inclusion of persons with disabilities.

The total funds paid out to Portugal under the RRF now stand at €11.4 billion, which is 57% of the total allocation. Portugal’s overall recovery and resilience plan is financed by€22.2 billion, in grants and loans.

Cyprus: €76 million disbursement

The Commission has disbursed €76 million to Cyprus, representing the fourth payment under the RRF. This payment covers 17 milestones and 6 targets. They are focused on expanding online government services, improving corporate trust through the introduction of a transparent beneficial ownership registry and digitalising health care services notably in cross-border contexts. The reforms and investments will also simplify the issuance and transfer of title deeds as well as introduce digital solutions, to ease business transactions.

The total funds paid out to Cyprus under the RRF now stand at €568 million, which is 46.5% of the total allocation. Cyprus’s overall recovery and resilience plan is financed by €1.22 billion in grants and loans.

Malta: €48.7 million disbursement

The Commission has disbursed €48.7 million to Malta, representing the third payment under the RRF. This payment covers 11 milestones and 13 targets related to 15 reforms and 9 investments, including measures to increase access to free public transport, promoting sustainable mobility by signing contracts for the procurement of electric vehicles for use in the public sector, upgrading education infrastructure by renovating public schools, enhancing healthcare services by purchasing additional medical equipment and setting up a neonatal hearing screening program to detect and address possible hearing issues in newborns, modernising the justice system with the purchase of new digital equipment and tools, and strengthening Malta’s anti-money laundering framework.

The total funds paid out to Malta under the RRF now stand at €215 million, which is 66% of the total allocation. Malta’s overall recovery and resilience plan is financed by €328 million in grants.

For More Information

An interactive map showcasing examples of reforms and investments supported by the Recovery and Resilience Facility is available online. Further details on the RRF payment claim process can be found in the Commission’s Q&A document.